Federal Register / Vol. 72, No. 71 / Friday, April 13, 2007 / Notices 18707 

21 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A). 

4 17 CFR 240.19b–4(f)(6). 

5 17 CFR 242.600 et seq. 

6Odd-lot orders are orders for a size less than the 

standard unit (round lot) of trading, which is 100 

shares for most stocks, although some stocks trade 

in 10 share units. 

7The Exchange notes that trading centers that 

provide sub-penny executions are currently 

developing order types that allow market 

participants to request a non-sub-penny execution. 

The Exchange states that the Routing Broker will 

perform this function only until such time as 

needed for the creation of these new order types 

and the completion of any systems modifications 

associated with the handling of the new order 

types. 

8On February 27, 2006, the Commission 

approved the Exchange’s business combination 

with Archipelago Holdings, Inc. (‘‘Merger’’). See 

Securities Exchange Act Release No. 53382 

(February 27, 2006), 71 FR 11251 (March 6, 2006) 

(SR–NYSE–2005–77). Pursuant to the Merger, NYSE 

Group, Inc. became the overall parent company of 

the Exchange and Archipelago Holdings, Inc. NYSE 

Group, Inc. operates two securities exchanges: The 

Exchange and NYSE Arca, Inc. (formerly known as 

the Archipelago Exchange, or ArcaEx, and the 

Pacific Exchange). ArcaSec remains a wholly 

owned subsidiary of Archipelago Holdings, Inc. and 

is therefore an affiliate of the Exchange. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, as amended, is consistent with 

the Act. Comments may be submitted by 

any of the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–NASD–2006–109 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NASD–2006–109. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room. Copies of such filing will also be 

available for inspection and copying at 

the principal office of NASD. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to the File 

Number SR–NASD–2006–109 and 

should be submitted on or before May 

4, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.21

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–7008 Filed 4–12–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55590; File No. SR–NYSE–

2007–29] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change and 

Amendment No. 1 Thereto Relating to 

Rules 13 (‘‘Definitions of Orders’’) and 

17 (‘‘Use of Exchange Facilities’’) 

April 5, 2007. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on March 16, 

2007, the New York Stock Exchange 

LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been substantially prepared by the 

Exchange. On April 5, 2007, NYSE filed 

Amendment No. 1 to the proposed rule 

change. The Exchange has filed the 

proposal as a ‘‘non-controversial’’ rule 

change pursuant to Section 19(b)(3)(A) 

of the Act 3 and Rule 19b–4(f)(6) 

thereunder,4 which renders it effective 

upon filing with the Commission. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change, as amended, from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is proposing to amend 

Exchange Rules 13 (‘‘Definitions of 

Orders’’) and 17 (‘‘Use of Exchange 

Facilities’’) in order to establish a 

mechanism to route orders to away 

market centers when that market center 

is displaying the national best bid and 

offer in accordance with Exchange Rules 

and Regulation NMS under the Act 5

(‘‘Reg. NMS’’). The Exchange further 

proposes to have its order router 

facilitate the acceptance of executions 

that result in an odd-lot or a sub-penny 

execution. The text of the proposed rule 

change is available at NYSE, the 

Commission’s Public Reference Room, 

and www.nyse.com. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

NYSE included statements concerning 

the purpose of and basis for the 

proposed rule change and discussed any 

comments it received on the proposed 

rule change. The text of these statements 

may be examined at the places specified 

in Item IV below. NYSE has prepared 

summaries, set forth in Sections, A, B, 

and C below, of the most significant 

aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange is proposing to amend 

Exchange Rules 13 and 17 to establish 

a mechanism to route orders to away 

market centers (‘‘Routing Broker’’) when 

that market center is displaying the 

national best bid and offer in 

accordance with Exchange Rules and 

Reg. NMS. Through this filing the 

Exchange further proposes to have its 

Routing Broker facilitate the acceptance 

of executions that result in an odd-lot 6

or a sub-penny 7 execution after the 

Routing Broker routed an Exchange 

order to an away market center. 

The Exchange intends to use its 

broker-dealer affiliate,8 Archipelago 

Securities LLC (‘‘ArcaSec’’), as its 


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18708 Federal Register / Vol. 72, No. 71 / Friday, April 13, 2007 / Notices 

9 In the event the Exchange seeks to use another 

entity as its Routing Broker, the Exchange 

understands that it would be required to obtain 

Commission approval. 

10Currently ArcaSec performs two functions for 

NYSE Arca, Inc. ArcaSec acts as the outbound order 

routing facility of NYSE Arca, Inc. See Securities 

Exchange Act Release No. 52497 (September 22, 

2005), 70 FR 56949 (September 29, 2005) (SR–PCX–

2005–90); see also Securities Exchange Act Release 

No. 44983 (October 25, 2001), 66 FR 55225 

(November 1, 2001) (SR–PCX–00–25). The 

Exchange states that, currently, the NASD is 

responsible for carrying out the oversight and 

enforcement responsibilities for ArcaSec as the 

designated examining authority designated by the 

Commission pursuant to Rule 17d–1 of the Act with 

the responsibility for examining the Routing Broker 

for compliance with the applicable financial 

responsibility rules. The Exchange states that it 

intends to enter into a 17d–2 agreement with a 

regulator other than the Exchange or any of its 

affiliates to regulate its outbound router. 

In addition, on March 12, 2007, the Commission 

authorized ArcaSec to act as a marketing agent on 

behalf of NYSE Arca Tech 100 Index and NYSE 

Arca Tech 100 ETF. This business activity has no 

connection to ArcaSec’s facility functions as 

described above. See Securities Exchange Act 

Release No. 55442 (March 12, 2007), 72 FR 12654 

(March 16, 2007) (SR–NYSEArca–2007–09). 

11The term ‘‘facility’’ as defined in Section 3(a)(2) 

of the Act, as amended, provides, * * * when used 

with respect to an exchange includes its premises, 

tangible or intangible property whether on the 

premises or not, any right to the use of such 

premises or property or any service thereof for the 

purpose of effecting or reporting a transaction on an 

exchange (including, among other things, any 

system of communication to or from the exchange, 

by ticker or otherwise, maintained by or with the 

consent of the exchange), and any right of the 

exchange to the use of any property or service. See 

15 U.S.C. 78c(a)(2). 

12 Id. 

13Absent any unusual market conditions or the 

timing of such trades (for example, the execution 

of the order at 15:59:59) it is intended that the 

Routing Broker will be flat in all positions at the 

end of each trading day. 14Any and all loses incurred during the 

facilitation of odd-lot and sub-penny executions 

will be assumed by the Routing Broker as part of 

the routing service provided. 

Routing Broker 9 to route orders,10

subject to Exchange rules and Reg. 

NMS, to away market centers displaying 

protected bids and protected offers, as 

defined in Rule 600(b)(57) of Reg. NMS. 

The Exchange believes that the Routing 

Broker will offer an efficient mechanism 

for the Exchange to route orders to away 

market centers for execution in 

compliance with Exchange Rules and 

Reg. NMS. 

Pursuant to the proposed rule, 

Exchange systems will provide the 

Routing Broker with routing 

instructions to route orders to other 

market centers and report such 

executions back to the Exchange. The 

Exchange states that the Routing Broker 

cannot change the terms of an order or 

the routing instructions, nor does the 

Routing Broker have any discretion 

about where to route an order. 

The Exchange states that the Routing 

Broker will operate as a ‘‘facility’’ 11 of 

the Exchange in that it will serve as a 

‘‘system of communication to or 

from’’ 12 the Exchange. When an order 

must be routed to an away market center 

for execution, Exchange systems will 

affix all order handling information to 

the order. Exchange systems will 

automatically transmit the order and the 

relevant order handling information to 

the Routing Broker. In turn, the Routing 

Broker will facilitate the delivery of the 

received order to the destination away 

market. The Routing Broker will obtain 

receipts of executions and deliver those 

receipts of executions back to Exchange 

systems. 

In particular, and without limitation, 

under the Act, the Exchange will be 

responsible for filing with the 

Commission rule changes and fees 

relating to the functions performed by 

the Routing Broker for the Exchange and 

will be subject to exchange nondiscrimination requirements. 

Furthermore, the books, records, 

premises, officers, agents, directors, and 

employees of the Routing Broker, as a 

facility of the Exchange, shall be 

deemed to be the books, records, 

premises, officers, agents, directors, and 

employees of the Exchange for purposes 

of, and subject to oversight pursuant to, 

the Act. The books and records of the 

Routing Broker as a facility of the 

Exchange shall be subject at all times to 

inspection and copying by the Exchange 

and the Commission. 

In addition to routing orders to away 

market centers, the Routing Broker will 

facilitate the acceptance of executions 

that results in an odd-lot or a sub-penny 

execution as Exchange systems are 

unable to accept such executions after 

the Routing Broker routes an Exchange 

order to an away market center. 

Currently, odd-lot orders on the 

Exchange are executed in a trading 

system that is separate from the 

Exchange system responsible for the 

execution of round-lot orders (‘‘odd-lot 

trading platform’’). The Exchange oddlot trading platform executes all oddlots orders against the specialist as the 

contra party separate from the trading 

system that is responsible for the 

execution of round lot orders. Since 

odd-lot orders are handled in a separate 

trading system, the Exchange systems 

that are responsible for the execution of 

round lot orders are unable to accept 

receipts of execution in odd-lots at the 

present time. 

Similarly, the Exchange has chosen 

not to quote and trade in sub-penny 

increments when permitted under Reg. 

NMS. 

In order to process receipts of odd-lot 

and sub-penny executions from an away 

market, the Exchange proposes to have 

the Routing Broker facilitate the 

handling of such odd-lot and sub-penny 

execution. Specifically, if the Routing 

Broker is in receipt of an odd-lot 

execution in response to the Exchange’s 

routing of a round lot order, it will 

assume the odd-lot position. The 

Routing Broker will then sell/buy the 

requested number of round lot shares to 

the Exchange member. The Routing 

Broker will perform this adjustment to 

each odd-lot execution in order to 

transmit a round lot execution to the 

Exchange. The Routing Broker will 

afford the Exchange order (i.e. for the 

Exchange member) the most favorable 

execution price based on the odd-lot 

execution(s) received by the Routing 

Broker from the away market. 

With regard to a sub-penny execution, 

the Routing Broker will perform an 

adjustment to each sub-penny 

execution. Specifically, the Routing 

Broker will round down for each buy 

order and up for each sell order and 

transmit a round penny execution to the 

Exchange order. Again, the Routing 

Broker will afford the Exchange order 

the most favorable execution price 

based on the sub-penny execution 

received by the Routing Broker from the 

away market. 

The Routing Broker will liquidate 

positions assumed as a result of the 

services provided to the Exchange. This 

service provided by the Routing Broker 

with regard to odd-lot and sub-penny 

executions is not intended to operate as 

a means to generate revenue. Rather, the 

Routing Broker is providing an 

additional service to the Exchange in 

order to facilitate the receipt of odd-lot 

and sub-penny executions from away 

market centers. To that end, it is the 

intent of the Routing Broker to be flat in 

all positions at the end of each trading 

day.13 The Routing Broker will 

incorporate an automated system to 

immediately assist in the liquidation 

(acquisition) for any residual long 

(short) positions. To mitigate financial 

risk 14 to the Routing Broker, registered 

trading personnel of the Routing Broker 

may be required to manually assist, as 

soon as practicable, in the liquidation 

(acquisition) of such positions when, 

due to the nature of the security (e.g. 

high-priced securities that trade with a 

wide spread) and its trading pattern or 

volatile market conditions, liquidation 

(acquisition) is not immediately 

possible. 

Below are examples of how the 

Routing Broker is intended to operate. 

ODD–LOT Executions 

Example 1: Exchange member Firm X 

enters an order on the Exchange to buy 100 


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 72, No. 71 / Friday, April 13, 2007 / Notices 18709 

15 15 U.S.C. 78f(b)(5). 

16 15 U.S.C. 78k–1(a)(1). 

17 15 U.S.C. 78s(b)(3)(A). 

18 17 CFR 240.19b–4(f)(6). 

19 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires that a self-regulatory 

organization submit to the Commission written 

notice of its intent to file the proposed rule change, 

along with a brief description and text of the 

proposed rule change, at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. NYSE has satisfied the five-day prefiling notice requirement. 

20 Id. 

21The Commission notes that NYSE’s proposed 

Rule 17(b) is substantially similar to Rule 2.11 of 

the National Stock Exchange, Inc. 

shares of ABC at $20.00. Exchange systems 

transmit the order with order handling 

instructions to the Routing Broker. The 

Routing Broker then transmits the order with 

the order handling instructions received from 

the Exchange systems to market center A. 

The Routing Broker receives reports of two 

odd-lot executions from market center A. The 

first report of execution is for 30 shares 

executed at a price of $20.00. The second 

report of execution completes the original 

order with an execution of the remaining 70 

shares at a price of $20.00. The Routing 

Broker will sell 100 shares to Exchange 

member Firm X at $20.00 and use the oddlots received from market center A to offset 

the position. The Routing Broker’s position is 

flat. 

Example 2: Exchange member Firm X 

enters an order on the Exchange to buy 100 

shares of ABC at $20.00. The Exchange 

systems transmit the order with order 

handling instructions to the Routing Broker. 

The Routing Broker then transmits the order 

with the order handling instructions received 

from the Exchange systems to market center 

A. The Routing Broker receives two odd-lot 

fills from market center A. The first report is 

for 30 shares executed at a price of $19.99. 

The second report of execution completes the 

original with an execution of the remaining 

70 shares at a price of $20.00. The Routing 

Broker sells 100 shares to Firm X at $19.99 

and uses the odd-lots to offset the position. 

The Routing Broker’s position is flat, with a 

loss of $0.70. 

Example 3: Exchange member Firm X 

enters an order on the Exchange to buy 100 

shares of ABC at $20.00. The Exchange 

systems transmit the order with order 

handling instructions to the Routing Broker. 

The Routing Broker then transmits the order 

with the order handling instructions received 

from the Exchange systems to market center 

A. The Routing Broker receives an odd-lot fill 

of only 30 shares at $20.00 and a report of 

cancellation for the remaining 70 shares of 

the original order. The Routing Broker will 

sell 100 shares to Firm X at $20.00. In turn, 

the Routing Broker will then go into the 

market to buy 70 shares of ABC. The Routing 

Broker receives a fill of 70 at $20.05. The 

Routing Broker will then use both odd-lots 

positions to offset the position taken as a 

result of handling the order of Firm X. The 

Routing Broker’s position is flat, with a loss 

of $3.50. 

Example 4: Exchange member Firm X 

enters an order on the Exchange to buy 100 

shares of ABC at $20.00. The Exchange 

systems transmit the order with order 

handling instructions to the Routing Broker. 

The Routing Broker then transmits the order 

with the order handling instructions received 

from the Exchange systems to market center 

A. The Routing Broker receives an odd-lot fill 

of only 30 shares at $20.00 and a report of 

cancellation for the remaining 70 shares of 

the original order. The Routing Broker will 

sell 100 shares to Firm X at $20.00. In turn, 

the Routing Broker will then go into the 

market to buy 70 shares of ABC. The Routing 

Broker receives a fill of 70 at $19.99. The 

Routing Broker will then use both odd-lots 

positions to offset the position taken as a 

result of handling the order of Firm X. The 

Routing Broker’s position is flat, with a profit 

of $0.70. 

SUB-PENNY Executions 

Example 1: Exchange member Firm X 

enters an order on the Exchange to buy 100 

shares of ABC at $20.00. The Exchange’s best 

offer is $19.98. Market Center A is displaying 

a best offer at $19.97. Market Center A also 

offers a mid-point match execution process 

that may result in a trade price that includes 

sub-pennies. The Exchange systems transmit 

the order with order handling instructions to 

the Routing Broker. The Routing Broker then 

transmits the order with the order handling 

instructions received from Exchange systems 

to market center A. The Routing Broker 

receives a fill of 100 shares at $19.975 due 

to a mid-point cross occurring at market 

center A. The Routing Broker will sell 100 

shares to member Firm X at $19.97 and uses 

the fill of 100 shares at $19.975 to offset the 

position. The Routing Broker will be flat, 

with a loss of $0.50. 

The use of the Routing Broker to route 

orders to another market center will be 

optional. In the event a member organization 

does not want to use the Routing Broker it 

must enter an immediate-or-cancel order or 

any such other order type available on the 

Exchange that is not eligible for routing. All 

bids and offers entered on the Exchange that 

are routed to other market centers via the 

Routing Broker which result in an execution 

shall be binding on the member organization 

that entered such bid and offer. 

The Routing Broker will not engage in any 

business for the Exchange other than its 

outbound router and facilitation functions as 

described above. In the event the Exchange 

seeks to have the Routing Broker engage in 

any other activities, it understands that the 

ability of the Routing Broker to engage in 

such new business activity would require 

Commission approval. 

The Exchange believes that the abovedescribed operation of the Routing Broker 

will serve as the most economically efficient 

execution of securities transactions. 

Furthermore, the Routing Broker is necessary 

for the Exchange to comply with its 

obligations pursuant to Reg. NMS. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the requirement under Section 6(b)(5) of 

the Act 15 that an exchange have rules 

that are designed to promote just and 

equitable principles of trade, to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. The proposed rule 

change is also designed to support the 

principles of Section 11A(a)(1) 16 in that 

it seeks to assure economically efficient 

execution of securities transactions. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the forgoing rule change does 

not: (1) Significantly affect the 

protection of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) become 

operative for 30 days after the date of 

this filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 17 and Rule 19b–

4(f)(6) thereunder.18

A proposed rule change filed under 

19b–4(f)(6) normally may not become 

operative prior to 30 days after the date 

of filing.19 However, Rule 19b–

4(f)(6)(iii) 20 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay. The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because such waiver would permit 

NYSE to immediately use the Routing 

Broker to route orders to other trading 

centers to prevent trade-troughs of 

protected quotations in NMS stocks.21

For this reason, the Commission 

designates the proposed rule change to 


pwalker on PROD1PC71 with NOTICES
18710 Federal Register / Vol. 72, No. 71 / Friday, April 13, 2007 / Notices 

22For the purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

2315 U.S.C. 78s(b)(3)(C). For purposes of 

calculating the 60-day period within which the 

Commission may summarily abrogate the proposal, 

the Commission considers the period to commence 

on April 5, 2007, the date on which the Exchange 

submitted Amendment No. 1. 

2417 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 52468 

(Sept. 19, 2005), 70 FR 56201 (Sept. 26, 2005). 

4Amendment No. 1 clarified that only the 

arbitrator(s) may issue subpoenas and delineated 

the manner in which a party may request the 

issuance of a subpoena. Amendment No. 2 

established a time frame for the parties to make and 

respond to objections to the requested subpoena 

and clarified that the arbitrator(s) may not rule on 

such a request until this time period has elapsed. 

Amendment No. 3 made technical changes to the 

rule and clarified that the arbitrator(s) must receive 

copies of any objections to the issuance of a 

subpoena. Amendment No. 4 clarified that a party 

requesting a subpoena may not serve the request or 

the draft subpoena on a non-party. 

be operative upon filing with the 

Commission.22

At any time within 60 days of the 

filing of such proposed rule change the 

Commission may summarily abrogate 

such rule change if it appears to the 

Commission that such action is 

necessary or appropriate in the public 

interest, for the protection of investors 

or otherwise in furtherance of the 

purposes of the Act.23

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–NYSE–2007–29 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE, Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NYSE–2007–29. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room. Copies of the filing also will be 

available for inspection and copying at 

the principal office of NYSE. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–NYSE–2007–29 and should 

be submitted on or before May 4, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.24

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6962 Filed 4–12–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55594; File No. SR–NYSE–

2005–48] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Amendments No. 1, 2, 3, and 

4 Thereto to Proposed Rule Change to 

Amend Rule 619 Pertaining to 

Subpoenas for the Production of 

Documents and Appearances of 

Witnesses 

April 6, 2007. 

On July 13, 2005, pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 the New York Stock 

Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

a proposed rule change to amend NYSE 

Rule 619, pertaining to subpoenas for 

the production of documents and 

appearance of witnesses. The proposed 

rule change was published for comment 

in the Federal Register on September 

26, 2005,3 and the Commission received 

no comments on the proposal. On April 

18, 2006, November 2, 2006, December 

22, 2006, and February 8, 2007, the 

NYSE filed Amendments No. 1, 2, 3, 

and 4, respectively, to revise the rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the NYSE.4 The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change, as amended, from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

NYSE is proposing to revise Rule 619, 

which pertains to subpoenas for the 

production of documents and the 

appearance of witnesses. Below is the 

text of the proposed rule change. 

Proposed new language is italicized and 

proposed deletions are in brackets. 

* * * * * 

(a) to (e) No change. 

(f) Subpoenas. 

(1) The arbitrator(s) [and any counsel 

of record to the proceedings] may issue 

subpoenas for the production of 

documents or the appearance of 

witnesses [shall have the power of the 

subpoena process as provided by law. 

All parties shall be given a copy of the 

subpoena upon its issuance. The parties 

shall produce witnesses and present 

proofs to the fullest extent possible 

without resort to the subpoena process.] 

The party who requests a subpoena 

must make a written request asking the 

arbitrator(s) to issue a subpoena. The 

request, along with the requested draft 

subpoena must be served directly on 

each other party in a manner that is 

reasonably expected to cause the 

request and the requested subpoena to 

be delivered to all parties on the same 

day. The requesting party may not serve 

the request or the requested draft 

subpoena on a non-party. The request 

and the requested subpoena must also 

be filed with the Director of Arbitration, 

with additional copies for each 

arbitrator, at the same time and in the 

same manner in which they are served 

on the parties. The parties shall produce 

witnesses and present proof at the 

hearing whenever possible without 

using subpoenas. 

(2) In the event a party receiving such 

a request objects to the scope or 

propriety of the subpoena, that party 

shall, within 10 days of service of the 

request, file with the Director of 

Arbitration, with copies to all other 

parties, written objections, including 

additional copies for each arbitrator. 

The party seeking the subpoena may 

respond thereto within five days of 

receipt of the objection. The arbitrator(s) 

appointed shall rule promptly on the 


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